Shares Silver Trust (SLV) resumed its downward trend and shed 0.5% off its value. Considering the ratio between SPDR Gold (GLD) and SLV picked up in the past few weeks, does this make SLV a better buying opportunity over GLD?
The Silver ETF sells silver “ to cover expenses and liabilities and any losses that may have occurred”. But the movement in the silver holding also stem from the changes in the demand for the ETF. In the past few weeks, the amount of silver holdings only slipped by 0.7%, while the leading gold ETF, SPDR Gold recorded sharp falls in its gold holdings: In the past week, GLD’s gold hoards fell by 2% and by 3.5% during October. As stated before, the changes in holdings aren’t only related to the shifts in demand for and ETF, but at face value this finding suggests a sharper fall in GLD’s demand than SLV’s. This comes even though gold has outperformed silver in the past few months. This is also indicated in the changes in the ratio between GLD and silver.
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